Market Talk – November 24, 2020

ASIA:

Australia has hit out at “needlessly” worsening relations with China, with the country’s prime minister appealing for smaller nations not to be caught in the crossfire of Sino-US rivalry. Morrison insisted Australia wanted “mutually beneficial” relations with both its largest trading partner and the United States, while having the right to pursue its own interests independent of both.

India’s October crude oil imports posted their steepest fall since July and seventh consecutive monthly year-on-year decline as rising COVID-19 cases limited mobility and curbed consumption; government data showed on Monday. Crude oil imports into the world’s third-biggest oil importer and consumer fell 21.6% from a year earlier to 15.14 million tonnes, or 3.58 million barrels per day (bpd), data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum & Natural Gas showed.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 638.22 points or 2.50% to 26,165.59
  • Shanghai decreased 11.67 points or -0.34% to 3,402.82
  • Hang Seng increased 102 points or 0.39% to 26,588.20
  • ASX 200 increased 82.50 points or 1.26% to 6,644.10
  • Kospi increased 15.17 points or 0.58% to 2,617.76
  • SENSEX increased 445.87 points or 1.01% to 44,523.02
  • Nifty50 increased 128.70 points or 1.00% to 13,055.15

The major Asian currency markets had a green day today:

  • AUDUSD increased 0.00488 or 0.67% to 0.73535
  • NZDUSD increased 0.00382 or 0.55% to 0.69761
  • USDJPY increased 0.11 or 0.11% to 104.60
  • USDCNY increased 0.00895 or 0.14% to 6.58307

Precious Metals:

  • Gold decreased 31.60 USD/t oz. or -1.72% to 1,804.25
  • Silver decreased 0.38 USD/t. oz or -1.63% to 23.192

Some economic news from last night:

South Korea:

Consumer Confidence (Nov) increased from 91.6 to 97.9

Some economic news from today:

Hong Kong:

Exports (MoM) (Oct) decreased from 9.1% to -1.1%

Imports (MoM) (Oct) decreased from 3.4% to 0.6%

Trade Balance decreased from -12.7B to -36.8B

EUROPE/EMEA:

Morrison insisted Australia wanted “mutually beneficial” relations with both its largest trading partner and the United States, while having the right to pursue its own interests independent of both. With a little over a month to go before the Brexit transition period ends, the Society of Motor Manufacturers and Traders on Tuesday issued yet another plea for an agreement that would avoid duties on vehicle exports and imports. Otherwise, it said, annual UK production could fall by almost a quarter to below 1 million units.

The major European stock markets had a green day:

  • CAC 40 increased 66.27 points or 1.21% to 5,558.42
  • FTSE 100 increased 98.33 points or 1.55% to 6,432.17
  • DAX 30 increased 165.47 points or 1.26% to 13,292.44

The major European currency markets had a green day today:

  • EURUSD increased 0.00308 or 0.26% to 1.18779
  • GBPUSD increased 0.00168 or 0.13% to 1.33498
  • USDCHF increased 0.00001 or 0.00% to 0.91212

Some economic news from Europe today:

France:

French Business Survey (Nov) decreased from 94 to 92

Germany:

German GDP (QoQ) (Q3) increased from -9.7% to 8.5%

German GDP (YoY) (Q3) increased from -11.3% to -3.9%

German Business Expectations (Nov) decreased from 94.7 to 91.5

German Current Assessment (Nov) decreased from 90.4 to 90.0

German Ifo Business Climate Index (Nov) decreased from 92.5 to 90.7

UK:

CBI Distributive Trades Survey (Nov) decreased from -23 to -25

Steel Production (Metric Ton) (Oct) increased from 544.90K to 565.00K

US/AMERICAS:

The Dow surpassed the 30,000 level mark for the first time in the index’s history after advancing over 450 points. The US’ political turmoil began to ease as Biden was permitted clearance to begin preparing for his presidency, although sitting President Donald Trump has not yet conceded. Chevron experienced the largest percentage gain with a reading of 5.04%, followed by JPMorgan Chase (4.62%), Goldman Sachs (3.79%), and Disney (3.77%).

Not everyone is shying away from Boeing’s newly approved 737 MAX jet, as Ryanair announced today they’d like to be the first in line to purchase the aircraft. “I think it is important for Boeing to announce some customer orders and we would certainly be very keen to be at the front of the queue because the MAX 200 is a great aircraft,” Chief Executive Michael O’Leary stated Tuesday. The 737 MAX was once Boeing’s fastest-selling product, but after two fatal crashes airliners are hesitant to bring the jet back into their fleet. Numerous US airliners have stated it would notify customers prior to booking their ticket that they were flying on the 737 MAX and allow them to change their flight if safety is of concern. Ryanair said they hope to secure a deal with Boeing within the next few weeks. Boeing’s stock rose 3.29% this Tuesday.

According to Experian’s 2020 State of Credit report, Baby Boomers (born from 1946 to 1964) are the generation in the US with the fastest mounting debt. The generations carried an average credit card debt of $6,747 and $25,813 in total debt excluding mortgages. Their delinquency rate (90 to 180 days past due) has reached 3.2%. “The upturn reflected a further strengthening of demand, which in turn encouraged firms to take on staff at a rate not previously seen since the survey began in 2009,” IHS Markit Chief Business Economist Chris Williamson stated.

US consumer confidence declined in November amid a hectic presidential election and rising coronavirus cases. The index fell to a reading of 96.1 from October’s 101.4 posting. Analysts at Reuters anticipated the index would drop to 98 in November. In comparison, consumer confidence stood at 132.6 in February 2020 before the coronavirus pandemic took over the global economy.

Inflation in Mexico slowed in November, according to the National Statistics Institute. Mexico’s consumer price index grew 0.04% in the first half of the month, which is one of the least significant increases on record for the fiscal year. This pushed the inflation rate down from 4.09% to 3.43%, which is still above the central bank’s 3% target.

US Market Closings:

  • Dow advanced 454.97 points or 1.54% to 30,046.24
  • S&P 500 advanced 57.84 points or 1.62% to 3,635.43
  • Nasdaq advanced 156.15 points or 1.31% to 12,036.79
  • Russell 2000 advanced 35.23 points or 1.94% to 1,853.53

Canada Market Closings:

  • TSX Composite advanced 179.72 points or 1.05% to 17,274.25
  • TSX 60 advanced 11.42 points or 1.12% to 1,033.31

Brazil Market Closing:

  • Bovespa advanced 2,407.38 points or 2.24% to 109,786.3

ENERGY:

The oil markets had a green day today:

  • Crude Oil increased 1.86 USD/BBL or 4.32% to 44.9200
  • Brent increased 1.65 USD/BBL or 3.58% to 47.7100
  • Natural gas increased 0.041 USD/MMBtu or 1.51% to 2.7520
  • Gasoline increased 0.056 USD/GAL or 4.65% to 1.2600
  • Heating oil increased 0.0528 USD/GAL or 4.03% to 1.3633

 

The above data was collected around 11:55 EST on Tuesday

 

  • Top commodity gainers: Crude Oil (4.32%), Gasoline (4.65%), Heating Oil (4.03%), and Brent (3.58%)
  • Top commodity losers: Gold (-1.72%), Palm Oil (-3.00%), Cotton (-1.75%), and Lumber (-2.39%)

The above data was collected around 12:03 EST on Tuesday.

BONDS:

Japan 0.03%(+2bp), US 2’s 0.16%(-0bps), US 10’s 0.86%(+0bps); US 30’s 1.57%(+1bps), Bunds -0.57% (+2bp), France -0.33% (+1bp), Italy 0.58% (-0bp), Turkey 11.57% (-25bp), Greece 0.68% (-0bp), Portugal 0.04% (+1bp); Spain 0.07% (-1bp) and UK Gilts 0.33% (+1bp).